Titanium dioxide - February 2008

Because of the high competition in Europe and low demand in North America, announced in early 2008, a majority of the leading companies increase in the price of titanium dioxide difficult achievable. Hope only to other markets, in particular the Asian market, so in February 2008, the company DuPont Titanium Technologies announced an increase in the price of titanium dioxide with a trademark Ti-Pure (R) from April 1, 2008 to 33 yen per kilogram in Japan. Increased in February 2008, prices in the African market, where the average price of titanium dioxide exceeded $ 2000 per ton (10% above previous).
The company Tronox Inc in the 4 square. 2007, the financial impact on rates because of an increase in the cost of chemical reagents used in the production of titanium dioxide, increasing transportation costs, weakening dollar.

Financial results of the company Huntsman Corporation (www.huntsman.com) in 2007 were also lower compared to 2006, average sales prices of titanium dioxide in the United States in 2007 were lower because of falling demand in the construction market, while in Europe price declines associated with the highly competitive because of the significant import. A number of American companies have increased exports of titanium dioxide in Europe.

Significant imports of titanium dioxide from the United States to Europe and the impact on your bottom line Kemira Group (www.kemira.com) in 2007 Operating profit decreased by 71% compared with 2006, the Company had to reduce the number of jobs at the plant for the production of titanium dioxide in Pori on 56 people to a total of 650 people. In January 2008, Kemira Pigments Oy environmental received permission to increase power plant in Pori from 120 to 150 thousand tons of titanium dioxide a year. This permit also would increase the production of sulphuric acid, iron sulfate recycling, reducing isolation and places for storage of iron and sulfate residue decomposition of ilmenite in the territory of the plant. Annually, the plant is formed about 500 thousand tons of iron sulphate, which was previously skladirovalsya in heaps. Currently, ferrous sulfate is sold almost entirely as a reagent used for water purification or as a feedstock for the production of such reagents.

Over the past 15 years, the price of titanium dioxide were stable, while the cost of production has increased steadily. The maximum rise in the cost of energy accounts, also went ore, both at the stage of production, and at the stage of transportation. Final products, which are produced with the consumption of titanium dioxide as raw material, went too far. Competition in the ongoing reorganization of the industry through mergers and acquisitions, has resulted in the current price level at which industry could not return the enclosed investment for a decade. Some companies have been forced to invest funds to cover operating costs and, consequently, to abandon the business of titanium dioxide as a nonprofit (Bayer, Kerr-McGee, Rhone Poulenc).

The rapid growth of consumption of titanium dioxide in the Chinese economy and the accompanying construction boom facilities for the production of titanium dioxide in China created a special situation in the world industry of titanium dioxide. The struggle between the old players fighting for a world market share, accompanied by a struggle with new producers, trying to find markets for its products, most of the match largely on the quality of products of world leaders. Consumers titanium dioxide around the world took advantage of this situation in the market to preserve the low prices for titanium dioxide. At present, many experts view the situation in the market of titanium dioxide as a turning point. Expected structural changes. In position will be small businesses and world leaders of this market. But some companies with the average production volumes could take that would lead to higher prices. Increased prices for titanium dioxide, and will contribute to the rising cost of energy. Increased gas prices one dollar leads to an increased cost of production of titanium dioxide at two dollars. Titanium dioxide is a white pigment best to make spreading not only in 2200 at a price of $ / t () 3000 USD / t (price equivalent to that of 15 years ago, which sold the product in the world). In order to return the money invested manufacturers, and to continue the further development of industries, the average price would rise by about 250 USD / t. Given that there is a cycle in the price of the product, it is logical to assume that the historic level of prices in the range of $ 1800-2200 per tonne, which existed at the beginning of 2000, must change and draw up to $ 2100-2500 / t. starting in 2008,

China plans to build several enterprises producing titanium dioxide pigment, in particular, in the central province of Binh Thuan with an initial annual output of 5000 tons, which by 2015 will reach 10000 tonnes, another factory for the production of titanium dioxide pigment with an initial annual production of 30000 tons, which by 2025 will reach 50000 t.

In Russia, in February 2008, it was stated that the establishment of two projects production of titanium dioxide. "The Corporation VSMPO-Avisma" intends to diversify from the production of titanium dioxide. In the future, the corporation expects that the titanium dioxide would account for about half of net profits "VSMPO-Avisma."

German chemical concern "and" Hest Administration of Tambov Region concluded an agreement on the establishment of the first areas in Tambov in Russia chemical industrial cluster, in the framework agreement with Hest "formed a unified system of industrial management platforms, established engineering infrastructure, a tax scheme future direction of chemical enterprises preferences at the local and regional level. In Tambov area in the city Uvarovo planned production of titanium dioxide.

While the bulk of Russian market of titanium dioxide are Ukrainian producers OAO "Sumykhimprom" and "Crimean Titan." In 2007, OAO "Sumykhimprom" increased supply of titanium dioxide in the Russian Federation. Since January 2008, the market general trend of increasing value, but the price of Ukrainian products from trading companies until February 2008 grew little due to low demand. OAO "Sumykhimprom" after the reconstruction and modernization of production of titanium dioxide has been able to stabilize and improve the quality of the product, to produce a product with 96.7 whiteness, the figure dropped yellowness almost doubled, to the level of 2,7-2,5. Indicator razbelivayuschey capacity increased from 1800 to 2080 units. Indicator masloemkosti product fell from 25 g to 100 g of pigment, to 18-19 g per 100 g of pigment. Start of production of titanium dioxide marks R-208 is scheduled in early 2009. In January 2008, production of titanium dioxide has increased by 16.3% compared with January 2007, and the production of waste through dehromatora iron sulfate 3 times. Dehromator exported to 10 countries around the world, including in the Czech Republic, Greece, France, Poland, Estonia and Russia.

National Titanium Dioxide Company Ltd. (Cristal) uses since 2005 at the plant for the production of titanium dioxide in Yanbu Saudi Arabia), two plants HAVER INTEGRA (manufactured by Haver & Boecker) for the packaging of titanium dioxide in bags of 25 kg. In September 2007, the company has ordered two more plants HAVER INTEGRA. This will increase productivity filling lines to 750 bags per hour. Haver & Boecker also offers installation HAVER impellernogo type titanium dioxide, filling in big sacks. Cristal Company plans to mount such an installation in summer 2008,

Researchers from the University of Leeds (UK) have developed a simple, economical and safe from an environmental point of view, the industrial method for obtaining titanium dioxide with high yield. New technology is patented Byung titansoderzhaschego commodities with alkali to remove impurities, which then leached acid with the formation of valuable by-products. are excellent use in the production of semiconductor materials. Balance after wash exposed to chlorine, which requires 20 times less than the amounts required are usually in industrial environments. Exit T iO2, on the technology reaches 97% of the theoretical (the industry average figure is now about 85%). Increased exit the finished product will enable companies to significantly reduce production costs and the cost of waste disposal. During the process also utilized excess heat and carbon dioxide. Carbon dioxide is used for the regeneration of alkali. According to this method, developers, technology can be improved to bring the exit to 99% TiO2. "The process can be used to highlight TiO2 from ores with varying degrees of enrichment" - says Professor Animesh Jha, a developer of the technology. Researchers from Leeds created industrial partnership with Millennium Inorganic Chemicals to finalize the technology to commercial use. This work will be funded by Sustainable Technology Initiative Programme (from DTI), together with the Engineering and Physical Science Research Council (EPSRC) and Millennium Inorganic Chemicals